DMC Global closes on controlling share of Arcadia Inc.
BROOMFIELD — Oilfield services provider DMC Global Inc. (Nasdaq: BOOM) has closed on a deal to acquire a 60% controlling stake in architectural building product supplier Arcadia Inc.
The deal, which was completed last week, is worth $282.5 million in cash and DMC stock.
DMC Global expects to acquire the remaining 40% interest in Arcadia through a three-year put and call option with the entirety of the transaction estimated at just under $470 million.
“The acquisition of Arcadia aligns with DMC’s strategy of building a diversified portfolio of industry-leading businesses that provide differentiated products and services to their markets,” according to a company news release.
“This is a milestone transaction for DMC and aligns with our strategy of building a diversified portfolio of industry-leading businesses with differentiated products and services,” DMC Global CEO Kevin Longe said in a prepared statement released this month when the deal was first announced.. “The acquisition of Arcadia will double DMC’s consolidated sales, strengthen our gross margins and provide diversification outside our more cyclical energy and industrial infrastructure markets.”
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